☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 85-4265519 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Units, each consisting of one Class A ordinary share, par value $0.0001 per share, and one-half of one redeemable warrant | SPTKU | The Nasdaq Stock Market LLC | ||
Class A common stock included as part of the units | SPTK | The Nasdaq Stock Market LLC | ||
Redeemable warrants, included as part of the units, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share | SPTKW | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | ||
Emerging growth company | ☒ |
Page | |||
Part I. Financial Information | |||
1 | |||
1 | |||
2 | |||
3 | |||
4 | |||
5 | |||
Part II. Other Information | |||
June 30, 2021 | December 31, 2020 | |||||||
(unaudited) | ||||||||
Assets: | ||||||||
Current Assets: | ||||||||
Cash | $ | 758,973 | $ | 153,938 | ||||
Prepaid Expenses | 622,278 | 0 | ||||||
Total current assets | 1,381,251 | 153,938 | ||||||
Deferred offering costs associated with initial public offering | 0 | 408,725 | ||||||
Cash and Investments held in Trust Account | 172,511,549 | 0 | ||||||
Total Assets | $ | 173,892,800 | $ | 562,663 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accrued offering costs and expenses | $ | 754,700 | $ | 362,230 | ||||
Due to related party | 8,957 | 0 | ||||||
Promissory note – related party | 0 | 176,000 | ||||||
Total current liabilities | 763,657 | 538,230 | ||||||
Deferred underwriting fee | 6,037,500 | 0 | ||||||
Warrant liability | 11,975,169 | 0 | ||||||
Total liabilities | 18,776,326 | 538,230 | ||||||
Commitments | 0 | |||||||
Class A Common Stock subject to possible redemption, 15,011,647 and 0 shares at redemption value at June 30, 2021 and December 31, 2020, respectively | 150,116,470 | 0 | ||||||
Stockholders’ Equity: | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding | 0 | 0 | ||||||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 2,238,353 and 0 shares issued and outstanding (excluding 15,011,647 and 0 shares subject to possible redemption) at June 30, 2021 and December 31, 2020, respectively | 224 | 0 | ||||||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 4,312,500 shares issued and outstanding at June 30, 2021 and December 31, 2020 | 431 | 431 | ||||||
Additional paid-in capital | 2,558,526 | 24,569 | ||||||
Retained earnings (accumulated deficit) | 2,440,823 | (567) | ) | |||||
Total stockholders’ equity | 5,000,004 | 24,433 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 173,892,800 | $ | 562,663 |
September 30, 2021 | December 31, 2020 | |||||||
(unaudited) | ||||||||
Assets: | ||||||||
Current Assets: | ||||||||
Cash | $ | 674,319 | $ | 153,938 | ||||
Prepaid expenses | 502,069 | 0 | ||||||
Total current assets | 1,176,388 | 153,938 | ||||||
Deferred offering costs associated with initial public offering | 0 | 408,725 | ||||||
Cash and investments held in Trust Account | 172,517,299 | 0 | ||||||
Total Assets | $ | 173,693,687 | $ | 562,663 | ||||
Liabilities and Stockholders’ Equity (Deficit) | ||||||||
Current liabilities: | ||||||||
Accrued offering costs and expenses | $ | 796,655 | $ | 362,230 | ||||
Due to related party | 14,957 | 0 | ||||||
Promissory note – related party | 0 | 176,000 | ||||||
Total current liabilities | 811,612 | 538,230 | ||||||
Deferred underwriting fee | 6,037,500 | 0 | ||||||
Warrant liability | 14,087,350 | 0 | ||||||
Total liabilities | 20,936,462 | 538,230 | ||||||
Commitments | ||||||||
Class A Common Stock subject to possible redemption, 17,250,000 and 0 shares issued and outstanding at redemption value at September 30, 2021 and December 31, 2020, respectively | 172,500,000 | 0 | ||||||
Stockholders’ Equity (Deficit): | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding | 0 | 0 | ||||||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 0 shares issued and outstanding (excluding 17,250,000 and 0 shares subject to possible redemption) at September 30, 2021 and December 31, 2020, respectively | 0 | 0 | ||||||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 4,312,500 shares issued and outstanding at September 30, 2021 and December 31, 2020 | 431 | 431 | ||||||
Additional paid-in capital | 0 | 24,569 | ||||||
Accumulated deficit | (19,743,206 | ) | (567 | ) | ||||
Total stockholders’ equity (deficit) | (19,742,775 | ) | 24,433 | |||||
Total Liabilities and Stockholders’ Equity (Deficit) | $ | 173,693,687 | $ | 562,663 |
For the Three Months Ended June 30, 2021 | For the Six Months Ended June 30, 2021 | For the Three Months Ended September 30, 2021 | For the Nine Months Ended September 30, 2021 | |||||||||||||
Formation and operating costs | $ | 1,022,177 | $ | 1,068,770 | $ | 252,818 | $ | 1,321,588 | ||||||||
Loss from Operations | (1,022,177) | ) | (1,068,770) | ) | (252,818 | ) | (1,321,588 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest earned on cash and marketable securities held in Trust Account | 8,099 | 11,549 | ||||||||||||||
Interest earned on investments held in Trust Account | 5,750 | 17,299 | ||||||||||||||
Offering costs allocated to warrants | 0 | (606,375) | ) | 0 | (606,375 | ) | ||||||||||
Change in fair value of warrant liability | 6,353,699 | 4,104,986 | (2,112,181 | ) | 1,992,805 | |||||||||||
Total other income, net | 6,361,798 | 3,510,160 | ||||||||||||||
Total other income (expense), net | (2,106,431 | ) | 1,403,729 | |||||||||||||
Net income | $ | 5,339,621 | $ | 2,441,390 | ||||||||||||
Net income (loss) | $ | (2,359,249 | ) | $ | 82,141 | |||||||||||
Weighted average shares outstanding of Class A common stock | 17,250,000 | 17,250,000 | 17,250,000 | 14,090,659 | ||||||||||||
Basic and diluted net income per share, Class A common stock | $ | 0 | $ | 0 | ||||||||||||
Weighted average shares outstanding of Class B common stock | 4,312,500 | 4,160,221 | ||||||||||||||
Basic net income per share, Class B common stock | $ | 1.24 | $ | 0.59 | ||||||||||||
Basic and diluted net income (loss) per share, Class A common stock | $ | (0.11 | ) | $ | 0.00 | |||||||||||
Basic weighted average shares outstanding of Class B common stock | 4,312,500 | 4,209,478 | ||||||||||||||
Basic net income (loss) per share, Class B common stock | $ | (0.11 | ) | $ | 0.00 | |||||||||||
Diluted weighted average shares outstanding of Class B common stock | 4,312,500 | 4,312,500 | 4,312,500 | 4,312,500 | ||||||||||||
Diluted net income per share, Class B common stock | $ | 1.24 | $ | 0.57 | ||||||||||||
Diluted net income (loss) per share, Class B common stock | $ | (0.11 | ) | $ | 0.00 |
Class A | Class B | Additional | Retained Earnings | Total | Class A | Class B | Additional | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | Common stock | Paid-in | (Accumulated | Stockholders’ | Common stock | Common stock | Paid-in | Accumulated | Stockholders’ | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit) | Equity | Stock | Amount | Stock | Amount | Capital | Deficit | Equity (Deficit) | |||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2021 | 0 | $ | 0 | 4,312,500 | $ | 431 | $ | 24,569 | $ | (567) | ) | $ | 24,433 | 0 | $ | 0 | 4,312,500 | $ | 431 | $ | 24,569 | $ | (567 | ) | $ | 24,433 | ||||||||||||||||||||||||||||||
Sale of 17,250,000 Units, net of underwriting discount and offering expenses and initial warrant liability | 17,250,000 | 1,725 | 0 | 0 | 152,648,926 | 0 | 152,650,651 | |||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common stock subject to possible redemption | (14,477,685) | ) | (1,448) | ) | 0 | 0 | (144,775,402) | ) | 0 | (144,776,850) | ) | |||||||||||||||||||||||||||||||||||||||||||||
Accretion of Class A common stock subject to possible redemption | — | 0 | — | 0 | (24,569 | ) | (19,824,780 | ) | (19,849,349 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | 0 | — | 0 | 0 | (2,898,231) | ) | (2,898,231) | ) | — | 0 | — | 0 | 0 | (2,898,231 | ) | (2,898,231 | ) | ||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | 2,772,315 | $ | 277 | 4,312,500 | $ | 431 | $ | 7,898,093 | $ | (2,898,798) | ) | $ | 5,000,003 | 0 | $ | 0 | 4,312,500 | $ | 431 | $ | 0 | $ | (22,723,578 | ) | $ | (22,723,147 | ) | |||||||||||||||||||||||||||||
Class A Common stock subject to possible redemption | (533,962) | ) | (53) | ) | 0 | 0 | (5,339,567) | ) | 0 | (5,339,620) | ) | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | 0 | — | 0 | 0 | 5,339,621 | 5,339,621 | — | 0 | — | 0 | 0 | 5,339,621 | 5,339,621 | ||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | 2,238,353 | $ | 224 | 4,312,500 | $ | 431 | $ | 2,558,525 | $ | 2,440,823 | $ | 5,000,004 | 0 | $ | 0 | 4,312,500 | $ | 431 | $ | 0 | $ | (17,383,957 | ) | $ | (17,383,526 | ) | ||||||||||||||||||||||||||||||
Net loss | — | 0 | — | 0 | 0 | (2,359,249 | ) | (2,359,249 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021 | 0 | $ | 0 | 4,312,500 | $ | 431 | $ | 0 | $ | (19,743,206 | ) | $ | (19,742,775 | ) |
Cash flows from operating activities: | ||||||||
Net income | $ | 2,441,390 | $ | 82,141 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Interest earned on marketable securities held in Trust Account | (11,549) | ) | ||||||
Interest earned on investments held in Trust Account | (17,299 | ) | ||||||
Offering costs allocated to warrants | 606,375 | 606,375 | ||||||
Change in fair value of warrant liability | (4,104,986) | ) | (1,992,805 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Prepaid assets | (622,278) | ) | ||||||
Prepaid expenses | (502,069 | ) | ||||||
Due to related party | 8,957 | 14,957 | ||||||
Accrued offering costs and expenses | 754,700 | 796,655 | ||||||
Net cash used in operating activities | (927,391) | ) | (1,012,045 | ) | ||||
Cash Flows from Investing Activities: | ||||||||
Investment of cash in Trust Account | (172,500,000) | ) | (172,500,000 | ) | ||||
Net cash used in investing activities | (172,500,000) | ) | (172,500,000 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from sale of Units, net of underwriting discount | 169,050,000 | 169,050,000 | ||||||
Proceeds from issuance of Private Placement Warrants | 5,950,000 | 5,950,000 | ||||||
Repayment of promissory note – related party | (176,000) | ) | (176,000 | ) | ||||
Payment of offering costs | (791,574) | ) | (791,574 | ) | ||||
Net cash provided by financing activities | 174,032,426 | 174,032,426 | ||||||
Net change in cash | 605,035 | 520,381 | ||||||
Cash, beginning of period | 153,938 | 153,938 | ||||||
Cash, end of the period | $ | 758,973 | $ | 674,319 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Initial value of Class A common stock subject to possible redemption | $ | 145,583,030 | $ | 172,500,000 | ||||
Change in Class A common stock subject to possible redemption | $ | 4,533,441 | $ | 17,299 | ||||
Deferred underwriters’ discount payable charged to additional paid-in capital | $ | 6,037,500 | $ | 6,037,500 |
Gross Proceeds | $ | 172,500,000 | ||
Less: | ||||
Proceeds allocated to public warrants | (10,130,155 | ) | ||
Class A common stock issuance costs | (9,719,194 | ) | ||
Plus: | ||||
Accretion of carrying value to redemption value | 19,849,349 | |||
Class A common stock subject to possible redemption | $ | 172,500,000 |
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | |||||||
Net Income (loss) per share for Class A common stock: | ||||||||
Allocation of income (loss) to Class A common stock | $ | (1,887,399 | ) | $ | 63,247 | |||
Weighted average shares outstanding of Class A common stock | 17,250,000 | 14,090,659 | ||||||
Basic and diluted net income (loss) per share, Class A common stock | $ | (0.11 | ) | $ | 0.00 | |||
Net Income (loss) per share for Class B common stock: | ||||||||
Allocation of income (loss) to Class B common stock | $ | (471,850 | ) | $ | 18,894 | |||
Basic weighted average shares outstanding of Class B common stock | 4,312,500 | 4,209,478 | ||||||
Basic net income (loss) per share, Class B common stock | $ | (0.11 | ) | $ | 0.00 | |||
Diluted weighted average shares outstanding of Class B common stock | 4,312,500 | 4,312,500 | ||||||
Diluted net income (loss) per share, Class B common stock | $ | (0.11 | ) | $ | 0.00 |
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||
Net Income per share for Class A common stock: | ||||||||
Interest income earned on securities held in the Trust Account | $ | 8,099 | $ | 11,549 | ||||
Less: Interest income available to the Company for taxes | (8,099) | ) | (11,549) | ) | ||||
Adjusted net income | $ | 0 | $ | 0 | ||||
Weighted average shares outstanding of Class A common stock | 17,250,000 | 17,250,000 | ||||||
Basic and diluted net income per share, Class A common stock | $ | 0.00 | $ | 0.00 | ||||
Net Income per share for Class B common stock: | ||||||||
Net income | $ | 5,339,621 | $ | 2,441,390 | ||||
Less: Income attributable to Class A common stock | 0 | 0 | ||||||
Adjusted net income | $ | 5,339,621 | $ | 2,441,390 | ||||
Basic weighted average shares outstanding of Class B common stock | 4,312,500 | 4,160,221 | ||||||
Basic net income per share, Class B common stock | $ | 1.24 | $ | 0.59 | ||||
Diluted weighted average shares outstanding of Class B common stock | 4,312,500 | 4,312,500 | ||||||
Diluted net income per share, Class B common stock | $ | 1.24 | $ | 0.57 |
Level 1 — | Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not being applied. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment. |
Level 2 — | Valuations based on (i) quoted prices in active markets for similar assets and liabilities, (ii) quoted prices in markets that are not active for identical or similar assets, (iii) inputs other than quoted prices for the assets or liabilities, or (iv) inputs that are derived principally from or corroborated by market through correlation or other means. |
Level 3 — | Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
● | in whole and not in part; |
● | at a price of $0.01 per warrant; |
● | upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and |
● | if, and only if, the last reported sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior the date on which the Company sends the notice of redemption to the warrant holders. |
● | in whole and not in part; |
● | at a price of $0.10 per warrant provided that the holder will be able to exercise their warrants on cashless basis prior to redemption and receive that number of shares based on the redemption date and the fair market value of the Class A common stock; |
● | upon a minimum of 30 days’ prior written notice of redemption; |
● | if, and only if, the last reported sale price of the Class A common stock equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders; and |
● | if the last reported sale price of the Class A common stock for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders is less than $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like), the Private Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above. |
June 30 | Quoted Prices In Active Markets | Significant Other Observable Inputs | Significant Other Unobservable Inputs | September 30 | Quoted Prices In Active Markets | Significant Other Observable Inputs | Significant Other Unobservable Inputs | |||||||||||||||||||||||||
2021 | (Level 1) | (Level 2) | (Level 3) | 2021 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Public Warrants Liability | $ | 6,555,000 | $ | 6,555,000 | $ | 0 | $ | 0 | $ | 7,762,500 | $ | 7,762,500 | $ | 0 | $ | 0 | ||||||||||||||||
Private Placement Warrants Liability | 5,420,169 | 0 | 0 | 5,420,169 | 6,324,850 | 0 | 0 | 6,324,850 | ||||||||||||||||||||||||
$ | 11,975,169 | $ | 6,555,000 | $ | 0 | $ | 5,420,169 | $ | 14,087,350 | $ | 7,762,500 | $ | 0 | $ | 6,324,850 |
Warrant Liability | Warrant Liability | |||||||
Fair value at January 1, 2021 | $ | 0 | $ | 0 | ||||
Initial classification of Public and Private Warrant liability at February 19, 2021 | 17,605,070 | 17,605,070 | ||||||
Change in fair value | 723,798 | 723,798 | ||||||
Fair value at March 31, 2021 | $ | 18,328,868 | ||||||
Fair Value at March 31, 2021 | $ | 18,328,868 | ||||||
Change in fair value | (6,353,699) | ) | (6,353,699 | ) | ||||
Transfer of Public Warrant liability to Level 1 | (6,555,000) | ) | (6,555,000 | ) | ||||
Fair Value at June 30, 2021 | $ | 5,420,169 | $ | 5,420,169 | ||||
Change in fair value | 904,681 | |||||||
Fair Value at September 30, 2021 | $ | 6,324,850 |
September 30, 2021 | ||||||||
Inputs | ||||||||
Risk-free interest rate | 1.05 | % | 1.11 | % | ||||
Expected remaining term (years) | 6.06 | 5.75 | ||||||
Expected volatility | 15.5 | % | 17.7 | % | ||||
Stock price | $ | 9.62 | $ | 9.75 |
Carrying Value as of June 30, 2021 | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value as of June 30, 2021 | |||||||||||||
U.S. Money Market | $ | 287 | $ | 0 | $ | 0 | $ | 287 | ||||||||
U.S. Treasury Securities | 172,511,262 | 0 | 12,867 | 172,498,395 | ||||||||||||
$ | 172,511,549 | $ | 0 | $ | 12,867 | $ | 172,498,681 |
Carrying Value as of September 30, 2021 | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value as of September 30, 2021 | |||||||||||||
U.S. Treasury Securities | 172,516,929 | 0 | (2,041 | ) | 172,514,888 | |||||||||||
$ | 172,517,299 | $ | 0 | $ | (2,041 | ) | $ | 172,515,258 |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1A. | RISK FACTORS. |
Exhibit | Description |
Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
Certification of Principal Executive Officers and Principal Financial Officer Pursuant to U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS* | XBRL Instance Document |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document |
101.SCH* | XBRL Taxonomy Extension Schema Document |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB* | XBRL Taxonomy Extension Labels Linkbase Document |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith. |
SPORTSTEK ACQUISITION CORP. | ||||
Date: | ||||
/s/ Jeffrey | ||||
Name: | ||||
Title: |
By: | /s/ C. Tavo Hellmund | ||
Name: | |||
Title: |
By: | |||
Name: | Timothy W. Clark | ||
Title: | Chief Financial Officer and Chief Operating Officer |